Donations aren’t corrupt, says MP

PHIL Woolas has refuted suggestions of financial impropriety surrounding the Labour Party deputy leadership campaign he co-ordinated for Cabinet Minister Peter Hain. The Oldham East and Saddleworth MP chaired Mr Hain’s campaign earlier this year, which has become the latest under investigation by the Electoral Commission for failures to declare cash donations.

The Oldham East and Saddleworth MP chaired Mr Hain’s campaign earlier this year, which has become the latest under investigation by the Electoral Commission for failures to declare cash donations.

Mr Hain told Parliament on Monday that he was reviewing all campaign donations as some were "not registered as they should have been".

But Mr Woolas, who says he was not involved with campaign finances, told the Advertiser that "The idea that Peter Hain is corrupt is laughable – he is a monk."

He said the issues centre on two payments which were made directly to cover costs incurred – instead of going through the campaign office first, and thereby being properly registered.

The donations in question are a £5,000 contribution from Labour’s chief fundraiser Jon Mendelsohn and £1,300 from Huw Roberts, Director of Welsh Affairs at Royal Mail.

"I wasn’t involved with the funding side but I’ve spoken to Peter Hain and he explained what happened," he said.

"You have to pay a percentage of what you raise to the Labour Party for their services, such as mailshots and room hire. Jon Mendelsohn paid for this directly, which meant it didn’t go through the campaign books, so Peter didn’t realise the payment had been made.

"The second payment relates to a restaurant rented for a fundraising event in Cardiff. Huw Roberts paid the restaurant directly rather than giving his money to the campaign; so again Peter didn’t realise it had been paid.

"It’s fair to call it a cock-up but that does not make it corrupt."

The Electoral Commission is already investigating donations given to Harriet Harman and Wendy Alexander, Labour’s leader in Scotland, and Mr Woolas admitted he is concerned the controversy is putting the Government on the backfoot.

"It’s clearly bad for the party but there’s no question here of someone personally gaining financially from this," he said.